FERC · FERC-0003 · record R2059

Enhance Market Surveillance and Fraud Detection Use Case

Federal Energy Regulatory Commission · FERC

Overview

Development stage: In development or acquisitionSource: a) Pre-deployment – The use case is in a development or acquisition status.
High-impact designation: Not high-impactSource: c) Not high-impact
Impact justification: This use case is in pre-deployment and initial analysis determines that it will not make decisions or take actions that directly affect individual rights, benefits, or services. Reassessment will be conducted upon development.
Start date: Not reported
Withheld from public reporting: OtherSource: d) Other

Mission

Topic area: Energy and the Environment
Operational functions: Fraud, waste and improper payments Derived by keyword rules; see methodology

Problem the AI is intended to solve

The AI solution aims to assist staff in analyzing large and complex market datasets for market integrity and compliance purposes. It will process and interpret vast amounts of trading data at high speed, identifying anomalies, trends, and potential regulatory violations. This capability will help maintain fair and transparent markets, enabling staff to focus on strategic decision-making. The AI’s efficiency and precision will save time, improve compliance, and uphold public trust in market operations.

Expected benefits

Not reported

System outputs

Not reported

Technology

AI classification: Other
System name(s): Not reported
Custom-developed code: Yes
Public source code: Not reported

Sourcing

How it was built: Contract and in-houseSource: c) Developed with both contracting and in-house resources
Vendor (as reported): Zvolvant (Small Business)
Vendors (standardized): None on the standard list

A vendor is the supplier named by the agency. It does not identify the underlying model or AI technology.

Data and privacy

Involves PII: Not reported
Privacy Impact Assessment: Not reported
Authorization to Operate: No
Demographic features: k) None of the above
Training and evaluation data: We have not started work on this use case and have not identified specific data sets needed to support all market surveillance activities.
Federal Data Catalog: Not reported

Governance

3 of 8 minimum-practice questions answered. A blank answer means the agency reported nothing; it does not mean the practice is absent.

Pre-deployment testingNo answer reported

AI impact assessmentReported in placeSource: a) Yes

Independent reviewReported in placeSource: c) Yes – by the CAIO

Ongoing monitoringNo answer reported

Operator trainingNo answer reported

Fail-safeNo answer reported

Appeal processNot applicableSource: b) Not applicable

User and public consultationNo answer reported

Potential impacts and how they were identified

Not reported